Cable consolidates ahead of BOE policy,good to buy at dips

GBP/USD has made a intraday high of 1.5635 and is currently trading at 1.56020.It is trading in narrow range and market awaits BOE statement.

Cable trimmed its gains even after better than expected manufacturing production data. U.K manufacturing production increased by 0.2% June, in line with estimations and following a dec line of 0.6% in May.

The BOE is expected to keep interest rates on hold at its MPC meeting today. The inflation report will shed more light on the bank’s outlook for growth and inflation .BOE is expected to revise the inflation target marginally.

The minutes of meeting which is to be held show how many MPC members favour immediate rate hikes.

Technically it is facing strong resistance around 1.5650 and any break above would extend gains till 1.5675/1.56880.

Trend reversal level only above 1.5690.

On the lower side minor support is around 1.5580 and any break below 1.5580 will target 1.5550/1.5525.

It is good to buy at dips around 1.5545-50 with SL around 1.5520 for the TP of 1.5650/1.5680